Value offered framework Alternative exchanges For purchasing cookies: Muskogee OK (ca. 1917) Transaction #1: Cookies provided by traditional cookie baker Product or Service Actor A Aa value offered Actor B Ab value offered Cookies Consumer Monetary value Cookie manufacturer The utility received from eating cookies Transaction #2: Cookies provided by Mistletoe Troop Muskogee OK Product or Service Actor A Aa value offered Actor B Ab value offered Girl Scout Cookies Consumer Monetary value Girl Scouts of America The utility received from eating cookies The utility received from supporting a good cause The utility received from helping young girls learn business skills Assumptions: The exchange is the focal unit of analysis Customers have a choice between different institutional arrangements Exchanges are based on both monetary and social values Analysis is from the point of view of the customer The customer is considered Actor A The institution and its competitors are considered Actor B The customer compares alternative values offered by each organization The supplier provides the customer with the utility of full use of the product or service Value offered framework Alternative institutional exchanges For purchase of a reaper by a farmer (United States ca. 1845) Example #1: Transaction with Obed Hussey Product or Service Actor A Aa value offered Actor B Ab value offered Mechanical reaper Farmer A sales agreement Obed Hussey Reaper Example #2: Transaction with Cyrus McCormick Product or Service Actor A Aa value offered Actor B Ab value offered Mechanical reaper Farmer Installment agreement of $30 down with a payment of $90 at a later date if the machine fulfills guarantee Cyrus McCormick Reaper Written guarantee: Machine could harvest 1 acre per hour Value offered framework Alternative institutional exchanges For purchase of a clock (United States ca. 1800) Example #1: Transaction with traditional clockmaker Product or Service Actor A Aa value offered Actor B Ab value offered Clock Farmer A sales agreement (Cash down payment with balance due on delivery) Traditional clockmaker Clock Example #2: Transaction with Eli Terry Product or Service Actor A Aa value offered Actor B Ab value offered Wooden clock Farmer Installment agreement (Cash payments over time) Eli Terry Free trial offer for clock based on an installment agreement Value offered framework Alternative institutional exchanges For purchase of an digital audio player (United States ca. 2003) Example #1: Digital audio player company Product or Service Actor A Aa value offered Actor B Ab value offered Digital audio player Consumer Cash Digital audio player company Less expensive Big and clunky (or small and useless) Bad interface Example #2: Apple iPod Product or Service Actor A Aa value offered Actor B Ab value offered Digital audio player Consumer Cash for Ipod Cash for Itunes Apple Computer Unique user interface Ease of use Mass storage device to store data files Contact and schedule software i Tunes store Value offered framework Institutional exchanges within one company For Tupperware (United States ca. 2003) Example: Tupperware Product or Service Actor A Aa value offered Actor B Ab value offered Home party Brownie Wise Home party selling concept Earl Tupper $ Support Public relations Ruder & Finn Public relations plan “A charismatic female executive … we can run with that.” Earl Tupper Selects Brownie Wise as president of Tupperware Tupperware Tupperware Brownie Wise Product Extra cash Chance to get in on the ground floor Stay-at-home mom Hold parties Recruit new sales representatives Tupperware Tupperware Merchandising expertise Mass Merchants Floor space Sales support In early October, 1887 a blind ad was run by a company looking for additional investors . WANTED: AN acceptable party with $2,000.00 to purchase one-half interest in a very profitable and well-established manufacturing business, absolutely no risk, and guaranteed a 50 per cent profit on investment, with possibilities of much large profits and rare opportunity to right party. Value offered framework Institutional exchanges within one company For The Coca Cola Company Example: Coca-Cola Product or Service Actor A Aa value offered Actor B Ab value offered Coca Cola John Pemberton Two thirds ownership of formula Veneble Lowndes $ Support Coca Cola Veneble Lowndes Two thirds ownership of formula Walker Dozier $ Coca Cola John Pemberton One-half interest in manufacturing operation J.C. Mayfield, A.O. Murphey and E.H. Bloodworth $ Support Coca Cola John Pemberton Control of Entire Company Asa Candler Forgiveness of “debts owed” Coca Cola Asa Candler $1,000 Walker Dozer All their ownership in Coca-Cola

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